RAZON-LED listed integrated resort developer Bloomberry Resorts Corp. reported a 26% increase in its first-quarter (Q1) net income to P3.3 billion from P2.6 billion a year earlier, driven by higher gaming revenue.
Adjusting for the P2.9-billion one-time, non-cash gain from refinancing its P40-billion syndicated loan facility in February, Bloomberry said its first-quarter net income would have dropped by 83% to P445.8 million.
Gross gaming revenue (GGR) rose by 14% to P16.8 billion from P14.8 billion last year, led by contributions from Solaire Resort North in Quezon City.
“GGR generated by the mass tables and electronic gaming machines (EGM) segments across both our Metro Manila properties grew by 29%, powered by a resilient domestic mass market player base,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said.
“Solaire North continued to gain ground as GGR across the board increased by 29% sequentially, resulting in a P1.1-billion contribution to consolidated earnings before interest, taxes, depreciation, and amortization. However, Solaire Entertainment City’s year-over-year results were impacted by softness in gaming volumes arising from slow VIP play and the Philippine offshore gaming operators ban,” he added.
Total GGR at Solaire Resort Entertainment City fell by 18% to P12.1 billion due to lower volumes and hold rates in the VIP and EGM segments.
Solaire Resort North generated P4.6 billion in GGR as it continued to ramp up its VIP, mass tables, and EGM segments, supported by domestic demand.
Jeju Sun Resort & Casino in South Korea recorded P3.7 million in GGR, down from P15.6 million last year.
Bloomberry’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 11% to P4.4 billion. Excluding the P279.5-million pre-operating expenses of Solaire Resort North recorded in the first quarter of 2023, consolidated EBITDA would have dropped by 15%.
Non-gaming revenue increased by 35% to P3 billion from P2.2 billion a year ago.
Meanwhile, Mr. Razon said Bloomberry expects a boost from its upcoming online product under the Solaire brand.
“We are fully committed to pushing the performance of both of our resort businesses and Solaire Online even as we are focused on ramping our new online product which will be launching in the coming weeks,” Mr. Razon said.
Bloomberry shares declined by 2.91% or 12 centavos to close at P4 apiece on Wednesday. — Revin Mikhael D. Ochave
